Bill Text: NY S03125 | 2021-2022 | General Assembly | Introduced
Bill Title: Relates to provisions concerning debt collection procedures.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO CONSUMER PROTECTION [S03125 Detail]
Download: New_York-2021-S03125-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3125 2021-2022 Regular Sessions IN SENATE January 27, 2021 ___________ Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection AN ACT to amend the general business law, in relation to debt collection procedures The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Article 29-H of the general business law, as added by chap- 2 ter 753 of the laws of 1973, subdivision 4 of section 600 as added by 3 chapter 471 of the laws of 2018, subdivision 9 of section 601 as amended 4 by chapter 342 of the laws of 2011, subdivision 11 as amended and subdi- 5 vision 10 of section 601 as added by chapter 312 of the laws of 2018, 6 section 601-a as added by chapter 471 of the laws of 2018 and subdivi- 7 sion 3 of section 602 as added by chapter 342 of the laws of 2011, is 8 amended to read as follows: 9 ARTICLE 29-H 10 DEBT COLLECTION PROCEDURES 11 Section 600. Definitions. 12 601. Prohibited creditor practices. 13 601-a. Disclosure by [principal] creditors and/or debt 14 collection agencies. 15 602. [Violations and penalties] Creditor responsibilities. 16 603. [Severability] Prohibited debt collection practices. 17 603-a. Selling or transferring of debts. 18 603-b. Private right of action. 19 603-c. Violations and penalties. 20 603-d. Severability. 21 § 600. Definitions. As used in this article, unless the context or 22 subject matter otherwise requires: 23 1. "[Consumer claim] Debt" or "consumer debt" means any obligation or 24 alleged obligation of a natural person for the payment of money [or its25equivalent which is or is alleged to be in default and which arises] EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06374-01-1S. 3125 2 1 arising out of a consumer transaction wherein credit has been offered or 2 extended to a natural person, and the money, property [or], insurance, 3 service or services which [was] are the subject of the transaction [was] 4 are primarily for personal, family or household purposes, whether or not 5 such obligation has been reduced to a judgment. The term includes an 6 obligation of a natural person who is a co-maker, endorser, guarantor or 7 surety as well as the natural person to whom such credit was originally 8 extended. 9 2. "Debtor" means any natural person who owes or who is asserted to 10 owe a [consumer claim] consumer debt. 11 3. "[Principal creditor] Creditor" means any person, firm, associ- 12 ation, corporation, [or] organization [to whom] or other business entity 13 that offers or extends credit, creating a consumer [claim is] debt owed, 14 due or asserted to be due or owed, [or any assignee for value of said15person, firm, corporation or organization] but such term does not 16 include any person, association, firm, corporation, organization or 17 other business entity to the extent that it receives an assignment or 18 transfer of a debt in default solely for the purpose of facilitating 19 collection of such debt for another. 20 4. "Communication" means the conveying of information regarding a debt 21 directly or indirectly to any person through any medium. 22 5. "Consumer" means any natural person obligated or allegedly obli- 23 gated to pay any debt arising out of a transaction in which the money, 24 property, insurance, or services which are the subject of the trans- 25 action are primarily for personal, family, or household purposes, wheth- 26 er or not such obligation has been reduced to judgment. 27 6. "Debt collection agency" shall mean a person, firm or corporation 28 engaged in business, the principal purpose of which is to regularly 29 collect or attempt to collect debts: (a) owed or due or asserted to be 30 owed or due to another; or (b) obtained by, or assigned to, such person, 31 firm or corporation, that are in default when obtained or acquired by 32 such person, firm or corporation. 33 7. "Location information" means a consumer's place of abode and his or 34 her telephone number at such place, or his or her place of employment. 35 8. "Verification of the debt" means a copy of the last bill or notice 36 of collection sent from the creditor to the debtor, any judgment levied 37 in conjunction with such debt, and, if applicable, a copy of the judg- 38 ment release and a copy of the written communication advising the debtor 39 that his or her debt has been sold or transferred. 40 § 601. Prohibited creditor practices. No [principal] creditor, as 41 defined by this article, or his or her agent shall: 42 1. Simulate in any manner a law enforcement officer, or a represen- 43 tative of any governmental agency of the state of New York or any of its 44 political subdivisions; or 45 2. Knowingly collect, attempt to collect, or assert a right to any 46 collection fee, attorney's fee, court cost or expense unless such 47 [changes] charges are justly due and legally chargeable against the 48 debtor; or 49 3. Disclose or threaten to disclose information affecting the debtor's 50 reputation for credit worthiness with knowledge or reason to know that 51 the information is false; or 52 4. Communicate or threaten to communicate the nature of a consumer 53 [claim] debt to the debtor's employer prior to obtaining final judgment 54 against the debtor. The provisions of this subdivision shall not 55 prohibit a [principal] creditor from communicating with the debtor'sS. 3125 3 1 employer to execute a wage assignment agreement if the debtor has 2 consented to such an agreement; or 3 5. Disclose or threaten to disclose information concerning the exist- 4 ence of a debt known to be disputed by the debtor without disclosing 5 that fact; or 6 6. Communicate with the debtor or any member of his or her family or 7 household at any time other than between the hours of 8:00 A.M. and 9:00 8 P.M. local time or with such frequency [or at such unusual hours] or in 9 such a manner as can reasonably be expected to abuse or harass the 10 debtor; or 11 7. Threaten any action which the [principal] creditor in the usual 12 course of his or her business does not in fact take; or 13 8. Claim, or attempt or threaten to enforce a right with knowledge or 14 reason to know that the right does not exist; or 15 9. Use a communication which simulates in any manner legal or judicial 16 process or which gives the appearance of being authorized, issued or 17 approved by a government, governmental agency, or attorney at law when 18 it is not; or 19 10. Remotely disable a vehicle using a payment assurance device 20 defined in paragraph sixty-a of subsection (a) of section 9-102 of the 21 uniform commercial code or by any other means in order to repossess a 22 debtor's vehicle without first having given written notice of the possi- 23 ble remote disabling of a vehicle in the method and timetable agreed 24 upon by the consumer and the creditor in the initial contract for 25 services. The notice shall be mailed by registered or certified mail to 26 the address at which the debtor will be residing on the expected date of 27 the remote disabling of the vehicle. The notice shall be postmarked no 28 later than ten days prior to the date on which the [principal] creditor 29 or his or her agent obtains the right to remotely disable the vehicle; 30 or 31 11. If such [principal] creditor or agent sends more than fifty infor- 32 mation subpoenas per month, fail to keep complete records concerning all 33 information subpoenas sent by such [principal] creditor or agent. Such 34 records shall be maintained for five years. Contemporaneous records 35 shall be kept that set forth with specificity the grounds for such 36 [principal] creditor or agent's reasonable belief, which must be certi- 37 fied and accompany each information subpoena pursuant to rule fifty-two 38 hundred twenty-four of the civil practice law and rules, that the party 39 receiving the subpoena has in its possession information about the 40 debtor that will assist the creditor in collecting his or her judgement. 41 In addition to any other penalty that may be imposed, failure to main- 42 tain records in accordance with this subdivision shall subject such 43 [principal] creditor or agent to a civil penalty of not more than fifty 44 dollars per subpoena, up to a maximum of five thousand dollars per 45 violation, in an action brought by the attorney general[; or]. 46 § 601-a. Disclosure by [principal] creditors and/or debt collection 47 agencies. No [principal] creditors and/or debt collection agencies shall 48 make any representation that a person is required to pay the debt of a 49 family member in a way that contravenes with the Fair Debt Collection 50 Practices Act (15 USC § 1692 et seq.). In addition, the [principal] 51 creditors and/or debt collection agencies shall not make any misrepre- 52 sentation about the family member's obligation to pay such debts. 53 § 602. Creditor responsibilities. Every creditor or his or her agent 54 shall send a notice to the last known address of the debtor advising the 55 debtor when his or her debt is being sold or transferred, prior to or 56 contemporaneous with the sale of the debt. A copy of this notice shallS. 3125 4 1 be transmitted to the person, firm, organization or entity to whom the 2 creditor or his or her agent has agreed to sell or transfer the debt, 3 along with a copy of any notice in regard to the debt provided to the 4 creditor in accordance with paragraph (b) of subdivision seven of 5 section six hundred three of this article. A creditor shall provide a 6 copy of such notice to any debt collection agency hired to collect such 7 debt. 8 § 603. Prohibited debt collection practices. It is an unconscionable 9 and deceptive trade practice for a debt collection agency to attempt to 10 collect a debt owed, due, or asserted to be owed or due except in 11 accordance with the following: 12 1. Acquisition of location information. Any debt collection agency 13 communicating with any person other than the consumer for the purpose of 14 acquiring location information about the consumer in order to collect a 15 debt shall: 16 (a) identify himself or herself, state that he or she is confirming or 17 correcting location information about the consumer, and, only if 18 expressly requested, identify his or her employer; 19 (b) not state or imply that such consumer owes any debt; 20 (c) not communicate with any such person more than once, unless 21 requested to do so by such person or unless the debt collection agency 22 reasonably believes that the earlier response of such person is errone- 23 ous or incomplete and that such person now has correct or complete 24 location information. For the purposes of this paragraph, the debt 25 collection agency need not count as a communication returned unopened 26 mail or a message left with a party other than the person the debt 27 collection agency is attempting to reach in order to acquire location 28 information about the consumer, as long as the message is limited to a 29 telephone number, the name of the debt collection agency and a request 30 that the recipient telephone the debt collection agency; 31 (d) not communicate by post card; 32 (e) not use any language or symbol on any envelope or in the contents 33 of any communication effected by the mails or telegram that indicates 34 that the debt collection agency is in the debt collection business or 35 that the communication relates to the collection of a debt, provided 36 that a debt collection agency may use its business name or the name of a 37 department within its organization as long as any name used does not 38 connote debt collection; and 39 (f) if the debt collection agency knows the consumer is represented by 40 an attorney with regard to the subject debt and if the debt collection 41 agency has knowledge of the attorney's name and address or can readily 42 ascertain such attorney's name and address, not communicate with any 43 person other than that attorney for the purpose of acquiring location 44 information about the consumer unless the attorney fails to provide the 45 consumer's location within a reasonable period of time after a request 46 for the consumer's location from the debt collection agency and: 47 (i) informs the debt collection agency that he or she is not author- 48 ized to accept process for the consumer, or 49 (ii) fails to respond to the debt collection agency's inquiry about 50 the attorney's authority to accept process within a reasonable period of 51 time after the inquiry. 52 2. Communication in connection with debt collection. (a) Without the 53 prior written consent of the consumer given directly to the debt 54 collection agency after the institution of debt collection procedures, 55 or without permission of a court of competent jurisdiction, a debtS. 3125 5 1 collection agency shall not communicate with the consumer in connection 2 with the collection of any debt: 3 (i) orally, at any time other than between the hours of 8:00 A.M. and 4 9:00 P.M. local time or any unusual place known, or which should be 5 known, to be inconvenient to the consumer; 6 (ii) at the consumer's place of employment. If the debt collection 7 agency has received consent from the consumer to communicate with the 8 consumer at the consumer's place of employment, the debt collection 9 agency may communicate with the consumer, unless the debt collection 10 agency knows or has reason to know that the consumer's employer or 11 supervisor prohibits the consumer from receiving such a communication; 12 or 13 (iii) with excessive frequency. In the absence of knowledge of circum- 14 stances to the contrary, a debt collection agency shall assume that more 15 than twice during a seven-calendar-day period is excessively frequent. 16 In making its calculation, the debt collection agency need not include 17 any communication between a consumer and the debt collection agency 18 which is in response to an oral or written communication from the 19 consumer, or returned unopened mail, or a message left with a party 20 other than one who is responsible for the debt as long as the message is 21 limited to a telephone number, the name of the debt collection agency 22 and a request that one who is responsible for the debt telephone the 23 debt collection agency; or any communication which is required by law or 24 chosen from among alternatives of which one is required by law. 25 (b) In order to collect a debt, and except as provided by subdivision 26 one of this section, without the prior written consent of the consumer 27 given directly to the debt collection agency after the institution of 28 debt collection procedures, or without the prior written consent of the 29 consumer's attorney or without the express permission of a court of 30 competent jurisdiction, or as reasonably necessary to effectuate a post 31 judgment judicial remedy, a debt collection agency may not communicate, 32 in connection with the collection of any debt, with any person other 33 than the consumer, his or her attorney, a consumer reporting agency if 34 otherwise permitted by law, the creditor, the attorney of the creditor, 35 or attorney of the debt collection agency. 36 (c) After institution of debt collection, a debt collection agency 37 shall not communicate with a consumer with respect to a debt if the 38 consumer has notified the debt collection agency in writing that the 39 consumer refuses to pay a debt or wishes the debt collection agency to 40 cease further communication with the consumer with respect to that debt, 41 except: 42 (i) to advise the consumer that the debt collection agency's further 43 efforts are being terminated; 44 (ii) to notify the consumer that the debt collection agency may invoke 45 specified remedies which are ordinarily invoked by such debt collection 46 agency; 47 (iii) where applicable, to notify the consumer that the debt 48 collection agency intends to invoke a specified remedy; or 49 (iv) to respond to each subsequent communication from the consumer. 50 (d) For the purpose of this subdivision the term "consumer" includes 51 the consumer's parent (if the consumer is a minor), guardian, executor, 52 administrator, and spouse (unless the debt collection agency knows or 53 has reason to know that the consumer is legally separated from or no 54 longer living with his or her spouse), or an individual authorized by 55 the consumer to make purchases against the account which is the subject 56 of the collection efforts. A request that the debt collection agencyS. 3125 6 1 cease further communication, provided for under this subdivision, if 2 made by the consumer's spouse or an individual authorized by the consum- 3 er to make purchases against the account, only affects the debt 4 collection agency's ability to communicate further with the person 5 making the request. 6 3. Harassment or abuse. A debt collection agency shall not harass, 7 oppress or abuse any person in connection with the collection of a debt. 8 Without limiting the general application of the foregoing, the following 9 conduct is prohibited: 10 (a) the use or threat of violence or other criminal means to harm the 11 physical person, reputation, or property of any person; 12 (b) the use of obscene or profane language or language the natural 13 consequence of which is to abuse the recipient of the communication; 14 (c) the advertisement for sale of any debt to coerce payment of the 15 debt; 16 (d) causing a telephone to ring or engaging any person in telephone 17 conversation repeatedly or continuously with intent to annoy, abuse, or 18 harass any person at the called number; 19 (e) the publication of a list of consumers who allegedly refuse to pay 20 debts, except to another employee of the debt collection agency's 21 employer or to a consumer reporting agency or to persons meeting the 22 requirements of 15 USC 1681a(f) or 15 USC 1681b(3); or 23 (f) except as provided by subdivision one of this section, the place- 24 ment of telephone calls without meaningful disclosure of the caller's 25 identity. 26 4. False or misleading representations. A debt collection agency shall 27 not make any false, deceptive, or misleading representation or means in 28 connection with the collection of any debt. Without limiting the general 29 application of the foregoing, the following conduct is prohibited: 30 (a) the false representation or implication that the debt collection 31 agency is vouched for, bonded by, or affiliated with the United States 32 or any state, including the use of any badge, uniform or facsimile ther- 33 eof; 34 (b) the false representation of: 35 (i) the character, amount, or legal status of any debt, or 36 (ii) any services rendered or compensation which may be lawfully 37 received by any debt collection agency for the collection of a debt; 38 (c) the false representation or implication that any individual is an 39 attorney or any communication is from an attorney; 40 (d) the representation or implication that nonpayment of any debt will 41 result in the arrest or imprisonment of any person or the seizure, 42 garnishment, attachment, or sale of any property or wages of any person 43 unless such action is lawful and the debt collection agency or creditor 44 intends to pursue such action; 45 (e) the threat to take any action that cannot legally be taken or that 46 is not intended to be taken; 47 (f) the false representation or implication that a sale, referral, or 48 other transfer of any interest in a debt shall cause the consumer to: 49 (i) lose any claim or defense to payment of the debt; or 50 (ii) become subject to any practice prohibited by this article; 51 (g) the false representation or implication made in order to disgrace 52 the consumer that the consumer committed any crime or other conduct; 53 (h) the false representation or implication that accounts have been 54 turned over to innocent purchasers for value;S. 3125 7 1 (i) communicating or threatening to communicate to any person credit 2 information which is known or which should be known to be false, includ- 3 ing the failure to communicate a disputed debt's status as disputed; 4 (j) the false representation or implication that documents are legal 5 process; 6 (k) the use of any false representation or deceptive means to collect 7 or attempt to collect any debt or to obtain information concerning a 8 consumer; 9 (l) the use or distribution of any written communication which simu- 10 lates or is falsely represented to be a document authorized, issued, or 11 approved by any court, official or agency of the United States, the 12 state or any political subdivision thereof, or which creates a false 13 impression as to its source, authorization, or approval; 14 (m) the false representation or implication that documents are not 15 legal process forms and do not require action by the consumer; 16 (n) the false representation or implication that a debt collection 17 agency operates or is employed by a consumer reporting agency as defined 18 by 15 USC 1681a(f); 19 (o) except as otherwise provided under subdivision one of this section 20 and except for any communication which is required by law or chosen from 21 among alternatives of which one is required by law, or any formal plead- 22 ing in connection with any legal action, the failure to disclose clearly 23 in all communications made to collect a debt or to obtain information 24 about a consumer, that the debt collection agency is attempting to 25 collect a debt and that any information obtained will be used for that 26 purpose; or 27 (p) the use of any business, company, or organization name other than 28 the true name of the debt collection agency's business, company, or 29 organization. 30 5. Unfair practices. A debt collection agency shall not use any unfair 31 or unconscionable means to collect or attempt to collect a debt. Without 32 limitation of the foregoing, such prohibited conduct includes: 33 (a) the collection of any amount (including any interest, fee, charge, 34 or expense incidental to the principal obligation) unless such amount is 35 expressly authorized by the agreement creating the debt; 36 (b) the solicitation or use by a debt collection agency of any post- 37 dated check or other postdated payment instrument for the purpose of 38 threatening or instituting criminal prosecution; 39 (c) causing charges to be made to any person for communications by 40 misrepresentation of true purpose of the communication. Such charges 41 include collect telephone calls, telegram and wireless telephone fees; 42 (d) taking or threatening to take any nonjudicial action to effect 43 dispossession or disablement of property if: 44 (i) there is no present right to possession of the property claimed as 45 collateral; 46 (ii) there is no present intention to take possession of the property; 47 or 48 (iii) the property is exempt by law from such dispossession or disa- 49 blement; 50 (e) communicating with a consumer regarding a debt by post card; 51 (f) using any language or symbol, other than the debt collection agen- 52 cy's address, on any envelope when communicating with a consumer by use 53 of the mails or by telegram, or electronic communication copied to a 54 third party except that a debt collection agency may use its business 55 name or the name of a department within its organization as long as anyS. 3125 8 1 name used does not indicate that he or she is in the business of debt 2 collection; 3 (g) communicating with a consumer regarding a debt without identifying 4 himself or herself and his or her employer or communicating in writing 5 with a consumer regarding a debt without identifying himself or herself 6 by name and address; or 7 (h) if any consumer owes multiple debts and makes any single payment 8 to any debt collection agency with respect to such debts, such debt 9 collection agency may not apply such payment to any debt which is 10 disputed by the consumer and, where applicable, shall apply such payment 11 in accordance with the consumer's directions. 12 6. Deceptive forms. It is unlawful for any person to design, compile 13 and furnish any form knowing that such form would be used to create the 14 false belief in a consumer that a person other than the creditor of such 15 consumer is participating in the collection of or in an attempt to 16 collect a debt such consumer allegedly owes such creditor, when in fact 17 such person is not so participating. 18 7. Validation of debts. The following validation procedures shall be 19 followed by debt collection agencies: 20 (a) Within five days after the initial communication with a consumer 21 in connection with the collection of any debt, a debt collection agency 22 shall, unless the following information is contained in the initial 23 communication or the consumer has paid the debt, send the consumer a 24 clear written notice titled "debtor's rights", which shall contain: 25 (i) the delineated amounts of the original debt, any interest and 26 penalties accrued, and the total debt due at the time of the notice, 27 (ii) the name, address and telephone number of the creditor to whom 28 the debt is owed, or such creditor's agent, and the name, address and 29 telephone number of the original creditor, if different from the current 30 debt collection agency, 31 (iii) the date the debt was deemed in default, 32 (iv) a statement that unless the consumer, within thirty days after 33 receipt of the notice, disputes the validity of the debt, or any portion 34 thereof, the debt will be assumed valid by the debt collection agency, 35 and 36 (v) a statement that, if the consumer notifies the debt collection 37 agency in writing within the thirty-day period at the address designated 38 by the debt collection agency in the notice, that the debt, or any 39 portion thereof is disputed, the debt collection agency will obtain 40 verification of the debt against the consumer and a copy of such verifi- 41 cation will be mailed to the consumer by the debt collection agency. 42 (b) If the consumer notifies the debt collection agency in writing 43 within the thirty-day period described in paragraph (a) of this subdivi- 44 sion that the debt, or any portion thereof is disputed, or if notice of 45 such dispute is given to the debt collection agency in accordance with 46 this article, the debt collection agency shall not attempt to collect 47 the amount in dispute until the debt collection agency obtains and mails 48 to the consumer verification of the debt. A debt collection agency that 49 receives such written notice shall provide a copy thereof to the owner 50 of the debt. 51 (c) The debt collection agency shall maintain for one year from the 52 date the debtor's rights notice was mailed, documentation of the date 53 such notice was mailed, the date the response, if any, was received and 54 any action taken following such response.S. 3125 9 1 (d) The failure of a consumer to dispute the validity of a debt under 2 this section shall not be construed by any court as an admission of 3 liability by the consumer. 4 (e) The sending or delivery of any form or notice which does not 5 relate to debt collection and is expressly required by the Internal 6 Revenue Code of 1986, title V of the Gramm-Leach-Bliley Act, or any 7 provision of federal or state law relating to notice of data security 8 breach or privacy, or any regulation prescribed under any such provision 9 of law, shall not be treated as an initial communication in connection 10 with debt collection for purposes of this section. 11 (f) If the consumer notifies the debt collection agency in writing 12 after the thirty-day period described in paragraph (a) of this subdivi- 13 sion that the debt, or any portion thereof is disputed, the debt 14 collection agency shall obtain verification of the debt, and mail such 15 verification to the consumer. The debt collection agency may continue to 16 attempt to collect the amount in dispute. 17 § 603-a. Selling or transferring of debts. Every debt purchaser or his 18 or her agent shall send a notice to the last known address of the debtor 19 advising the debtor when the debt purchaser sells or transfers the debt, 20 prior to or contemporaneous with the sale of the debt. A copy of such 21 notice shall be transmitted to the person, firm, organization or entity 22 to whom the debt purchaser or his or her agent has agreed to sell or 23 transfer the debt along with a copy of any notice in regard to the debt 24 provided to the debt purchaser in accordance with paragraph (b) of 25 subdivision seven of section six hundred three of this article. A debt 26 purchaser shall provide a copy of such notice to any debt collection 27 agency hired to collect such debt. 28 § 603-b. Private right of action. 1. Notwithstanding any right of 29 action granted to any governmental body pursuant to this article, any 30 person who has been injured by reason of violation of this article may 31 bring an action against any person or persons, to enjoin such unlawful 32 act, and to recover an amount equal to (a) any actual damage sustained 33 by such person as a result of such failure, and (b) such additional 34 damages as the court may allow but not exceeding two thousand five 35 hundred dollars, and reasonable attorneys' fees. 36 2. Intent. A debt collection agency may not be held liable in any 37 action brought under this article, absent actual damage to the consumer, 38 if the debt collection agency shows by a preponderance of evidence that 39 the violation was not intentional and resulted from a bona fide error 40 notwithstanding the maintenance of procedures reasonably adopted to 41 avoid any such error. 42 3. Limitations. An action to enforce any liability created by this 43 article may be brought in any other court of competent jurisdiction, 44 within two years from the date on which the violation occurs. 45 § [602.] 603-c. Violations and penalties. 1. Except as otherwise 46 provided by law, any person who [shall violate] violates the terms of 47 this article [shall be] is guilty of a misdemeanor, and each such 48 violation shall be deemed a separate offense. 49 2. The attorney general or the district attorney of any county may 50 bring an action in the name of the people of the state to restrain or 51 prevent any violation of this article or any continuance of any such 52 violation. 53 3. Any aggrieved person or entity served with more than fifty informa- 54 tion subpoenas per month by a [principal] creditor or his or her agent 55 shall also have a cause of action to challenge compliance with subdivi- 56 sion [ten] eleven of section six hundred one of this article and/or theS. 3125 10 1 certification requirements of rule fifty-two hundred twenty-four of the 2 civil practice law and rules. In such action, a successful plaintiff 3 shall be awarded ten dollars for each information subpoena served upon 4 such plaintiff where it is shown that the required certification for 5 such information subpoena was not made pursuant to rule fifty-two 6 hundred twenty-four of the civil practice law and rules, that the 7 required record for such information subpoena was not maintained pursu- 8 ant to subdivision [ten] eleven of section six hundred one of this arti- 9 cle, or that the specific grounds for the certification required to 10 accompany such information subpoena pursuant to rule fifty-two hundred 11 twenty-four of the civil practice law and rules were not reasonable. A 12 successful plaintiff may also be awarded court costs and attorney fees. 13 § [603.] 603-d. Severability. If any provision of this article or the 14 application thereof to any person or circumstances is held invalid the 15 invalidity thereof shall not affect other provisions or applications of 16 the article which can be given effect without the invalid provision or 17 application, and to this [and] end the provisions of this article are 18 severable. 19 § 2. This act shall take effect on the first of January next succeed- 20 ing the date on which it shall have become a law, provided, however, 21 that section 602, subdivision 7 of section 603 and section 603-a of the 22 general business law, as added by this act, shall apply only to debts 23 incurred on or after the effective date of such sections.
